We all know SMEs constitute one of the pillars of the Indian economy. However, it is also a fact that financial distress rate amongst the SMEs is alarming and this is despite the Government doing its best to help SMEs in every possible manner. Such SMEs can now hope to come out of such difficult phase courtesy IBC 2016.. Being an ex-banker, I am aware about the ground level realities and will be able to pin point the reasons for distress as also the solutions needed. However—at the same time—I must caution against blind reliance on the material provided through this website because each SME will have a unique set of problems and an in depth—and separate– study is needed to diagnose the problem. Lastly this is an educational website and no income of any sort is being contemplated.

Sitting silently with placards outside offices and residences of defaulters, the staff of Punjab National Bank hope to name and shame such borrowers to recover up to Rs 150 crore worth bad loans every month under its nearly one-year-old Mission Gandhigiri.

The state-owned lender, which has been at the receiving end of the over Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi, today said it is intensifying the initiative, amid rising concerns over non-performing assets in the banking system.

Under Mission Gandhigiri, a recovery mechanism launched by PNB in May 2017, a team visits the borrower’s office or residence and sits there silently. Currently, there are 1,144 field staff members who are driving the mission.

“Through this initiative, the recovery team wishes to achieve its primary objective of getting these defaulters to the negotiation table and aim to recover Rs 100-150 crore in a month,” the bank said in a statement.

Following the governments directions regarding wilful defaulters, PNB said it has taken a lead by taking strong steps over the past few weeks.

“The bank has already declared 1,084 wilful defaulters and published photos of 260 such defaulters in newspapers,” it said.

The bank further said due to its aggressive stance towards wilful defaulters, 150 passports have been impounded over the past few months and the bank has also lodged 37 FIRs against defaulters.

Also, in a bid to leverage data analytics for loan recovery and risk management, the bank said it has tied up with a leading credit agency.

“This partnership will not only help the bank with loan recovery but will also help identify and automate profitable lending strategies and minimise credit and fraud risk,” it said.

The bank is also working towards improving internal systems by incorporating analytics and artificial intelligence for reconciliation of accounts.

PNB also said its two special One Time Settlement (OTS) schemes have helped accelerate NPA recovery.

As per the bank, from an average of recovering loan amount from 70,000-80,000 NPA accounts in a year, OTS has resulted in recovery from 2,25,000 NPA accounts over a span of 10 months.

The bank had gross non-performing assets (NPAs) of Rs 57,519 crore or 12.11 per cent of gross advances as of December 2017